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Publications and Press Releases :
Press Release
: News Archives
Legislative Council passes Revenue (No. 2) Bill
2007
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The Legislative Council passed the Revenue (No. 2) Bill 2007 today
(May 23). The Bill seeks to implement the tax relief measures in
respect of salaries tax and tax under personal assessment announced
in the 2007-08 Budget. The measures will be effected by amending
the Inland Revenue Ordinance.
The first measure is to revert the
marginal tax bands and tax rates of salaries tax to their 2002-03
levels. Each marginal tax band will be widened from $30,000 to $35,000,
and the highest two marginal tax rates will be reduced from 13%
and 19% to 12% and 17% respectively.
The second measure is to increase
the child allowance under salaries tax from $40,000 to $50,000 for
each child and introduce an additional child allowance of $50,000
in the year of assessment in which the child was born.
The third measure is to increase
the maximum amount of salaries tax deduction for self-education
expenses from $40,000 to $60,000.
The fourth measure is to reduce
the salaries tax and tax under personal assessment for 2006-07 by
50%, subject to a ceiling of $15,000. The reduction will be reflected
in the taxpayer's final tax payable for 2006-07.
Reducing 50% of salaries tax and
tax under personal assessment assessed for 2006-07 will cost the
Government about $8.1 billion in 2007-08. Other measures in respect
of salaries tax and tax under personal assessment will cost the
Government about $4.9 billion in a full year.
Ends/Wednesday, May 23, 2007
Issued at HKT 16:58
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